OCC Financial Management

Final Exam

Part One – Terms/Multiple Choice

Please circle the best answer to each question below:

  1. The amount of money a store pays for an item is called ______.
  2. Wholesale price
  3. Retail price
  4. Sales tax
  1. Carly owns a T-shirt shop. She pays $2 for each shirt and she sells the shirts for $10 each. So $8 is the ______on each shirt.
  2. Size
  3. Quantity
  4. Markup
  1. What is size?
  2. How large something is
  3. How well made something is
  4. How much money something costs
  1. Nicole came to Borders Books and bought a cup of coffee for $2. This means that $2 was the ______.
  2. Markup
  3. Wholesale price
  4. Retail price
  1. What is sales tax?
  2. Money paid to a bank when you open an account
  3. Money paid to the government based on a percentage of the cost of the item
  4. Money paid to the government based on a percentage of your salary
  1. Juan bought two packs of red licorice at the movie theater, so two was the ______he purchased.
  2. Quality
  3. Quantity
  4. Markup
  1. What is quality?
  2. How well made something is
  3. How large something is
  4. How many there are
  1. How is driving speed measured?
  2. Miles per hour
  3. Miles per gallon
  4. Percentage
  1. If you drive over the _____, the police could pull you over and give you a ticket.
  2. Legend
  3. Interstate highway
  4. Speed limit
  1. What is gas mileage?
  2. Number of miles a car can travel on one gallon of gas
  3. How much your gas costs every time you go the gas station
  4. Number of gallons of gas you can fit inside your car
  1. She wanted to go to a fancy restaurant for her anniversary, but she couldn’t just walk in when she wanted to eat. To make they had a table, her husband had to call first and make a ______.
  2. Lodging
  3. Reservation
  4. Inventory
  1. Recreation includes activities you do to ______.
  2. Earn money on the job
  3. Help people in need
  4. Relax in your free time
  1. The Holiday Inn and Motel 6 are both places to stay when you travel. They are examples of ______.
  2. Gas mileage
  3. Rental apartments
  4. Lodging
  1. The monthly fee paid to a landlord for a place to live is your ____.
  2. Rent
  3. Mortgage
  4. Down payment
  1. A person who owns an apartment or house and rents it to others is a ____.
  2. Dependent
  3. Beneficiary
  4. Landlord
  1. The fees that you pay when you take ownership of a house are called the ____.
  2. Closing costs
  3. Lease
  4. Security deposit
  1. Your ____ is insurance that will pay for damage to your house caused by fire, theft, or severe weather.
  2. Liability insurance
  3. Homeowner’s insurance
  4. Medical insurance
  1. The money a renter pays to the landlord before moving in is called ____. If the apartment is clean and un-damaged, it will be returned when the renter moves out.
  2. Down payment
  3. Security deposit
  4. Real estate tax
  1. A legal contract between a renter and the landlord is the ____.
  2. Lease
  3. Rent
  4. Real estate tax
  1. The money paid in advance as part of the purchase of a house is the ______.
  2. Closing costs
  3. Down payment
  4. Rent
  1. Insurance that covers damage to your car from fire and flood is _____.
  2. Liability coverage
  3. Medical coverage
  4. Comprehensive coverage
  1. Insurance that covers your doctor’s bills after an accident is _____.
  2. Liability coverage
  3. Medical coverage
  4. Comprehensive coverage
  1. Insurance that pays for other people’s injuries and property damage if you cause an accident is ____.
  2. Liability coverage
  3. Medical coverage
  4. Comprehensive coverage
  1. Insurance that pays for the repair of your car after an accident is ____.
  2. Uninsured motorist coverage
  3. Collision coverage
  4. Premium
  1. Insurance that pays for some of your costs if a driver without insurance hits your car is _____.
  2. Uninsured motorist coverage
  3. Collision coverage
  4. Premium
  1. A ____ is money paid to a company to buy insurance.
  2. Premium
  3. Labor
  4. Deductible
  1. An instrument that records how many miles a car has been driven is the ____.
  2. Labor
  3. Deductible
  4. Odometer
  1. Your ___ is the amount of money you have to pay for repairs before your insurance company pays.
  2. Deductible
  3. Premium
  4. Odometer
  1. Work done on a car in a repair shop is ____.
  2. Labor
  3. Premium
  4. Deductible
  1. Insurance rates are higher if you ____.
  2. Are married
  3. Are female
  4. Are under 25

Part Two – Problem Solving

Solve each problem below and circle your answer at the end. Please round to the nearest cent when necessary.

  1. Linda owns a music store. She buys a CD for $8. Then she marks the price up by 75%. What does she charge for the CD in her store?
  1. John owns a sandwich shop. It costs him $0.71 for the supplies to make each turkey sandwich. John sells these sandwiches at his shop for $5.99 each. How much is markup on each turkey sandwich?
  1. Katie spends $45 plus a $10 tips to get her hair done at a salon once a month. How much does she spend to get her done in one year?
  1. The item bought cost $16.98. The sales tax rate was 7%. What was the total cost of the item, including sales tax?
  1. The item bought cost $50. The sales tax rate was 6.4%. What was the total cost of the item, including sales tax?
  1. Jerron has his hair died purple at a beauty salon each month. He pays $48 plus a $10 tip. Jerron can buy hair dye for $11.99 and color his hair himself. If Jerron colors his own hair once a month, how much will he save in one year?
  1. A 300-ounce bottle of liquid laundry detergent costs $18.99. A 200-ounce bottle of the same brand costs $15.99. Which is the better buy, the 300-ounce bottle or the 200-ounce bottle?

*Answer all questions on Exercises98, 135, 162, 169, & 177 for problems38-67.